EKO International Inc (EKNL)

[21ZNA9]

Funny stuff going on with the share count

After losing an appeal, 2,926,291 shares were issued to Clear Path Securities LLC by court order on April 17, 2012. Apparently as part of the spin off agreement, EKNL cancelled 5,000,000 shares owned by John Formicola that were being held by Clear Path Capital LLC without presenting the TA with the stock certificates to legally cancel the shares. Because the stock certificates were never presented those 5,000,000 shares continued to be held in an account at Clear Path Capital LLC. John Formicola then put in an order with his brokerage, Clear Path Securities LLC, to sell 2,926,291 shares which Clear Path Securities LLC executed. Because those share were illegally sold, Clear Path Securities LLC filed a law suit which they won. EKLN was forced to re-issue 2,926,291 shares to Clear Path Securities LLC. This brought the outstanding share count to 31,683,037 and the float to 13,079,427.

Clear Path Securities LLC is still seeking attorney fees and other monetary damages. That part of the lawsuit is still pending and is scheduled to go to trial unless a settlement is reached first.